Issue No. 16

That’s a wonderful quote that I just made up, but you can’t argue that it's not true. The value of gold, for example, is not determined solely by its nature as an element but also by its rarity in relation to the supply-demand model. If there is more gold available for sale than there are people who want to buy it, then the price of gold will go down. Conversely, if there are more people who want to buy gold than there is gold available, then the price of gold will go up.

The same principle applies to everything in life. When something is in excess, we don't value it as much because familiarity lacks novelty. If you're always available, you're not rare, and therefore, you're not as valuable. Humans pursue almost everything in this world because of its value. Therefore, the value itself holds high value for us.

We spend most of our lives trying to increase our value by working and earning more money. As we climb the ladder of success, our value increases, and we feel more empowered to do things we couldn't do before. In the context of startups and businesses, valuation refers to the process of determining the monetary value of a company. This is typically done by considering various factors such as revenue, profits, assets, and growth potential. A startup that lacks value will struggle to attract new investors. It's a constant battle to maintain a high valuation. In dating, it becomes a game of assessing the value of the other person, including their salary, lifestyle, attractiveness, and more. We often seek someone who is of equal or higher value.

However, it is important to recognize that value should not be solely equated with material possessions or external markers of success. True value encompasses a broader range of qualities, including personal growth, emotional well-being, and the ability to make a positive impact on others. Striving for value should involve a holistic approach that considers both individual and societal well-being, fostering personal growth while contributing to the betterment of the world around us.

Understanding true value can be challenging in today's world, where many of us rarely contemplate its essence. But one way to consider it is by imagining yourself as an older person who has experienced it all. What do you believe you would value the most? Would it be your material possessions? Nobody cares if you have the latest iPhone. Would it be your salary or income? Superficial individuals might care, but as long as you are stable, most people don't give it much importance. When you are older, you will likely value the relationships you have with others and with your family.

If we observe older people with wealth, assuming they are physically fit, we often notice they do not pursue extravagance. Not because they have experienced it all, but because they know it holds little significance. This is why wealthy individuals often wear simple clothes. Granted, these garments may be expensive, but they don't scream "I am rich." There is even a term for this style: "silent fashion" or "stealth luxury." Take Mark Zuckerberg as an example. You are probably familiar with his signature shirt.

He wears it almost all the time he’s being recorded. You might think it's a cheap $20 shirt, but it's actually worth $300-$400 because it's a custom order from Brunello Cucinelli. One shirt, $300. Exclusivity is a result of rarity, and it holds value for the wealthy. In fact, anything that loudly proclaims "I am rich" is frowned upon in the super-rich society because it reeks of desperation for attention. The wealthiest individuals often lead the simplest lifestyles, not necessarily the cheapest, as they have nothing to prove. Instead, they invest their money and time in wealth-building machines such as hedge funds or investment portfolios, or networks of other successful people.

We can apply the same analogy to our activities in life. Whatever we pursue, we should aim for what is rare and unique to ourselves. After all, there is no one else like you, so why try to copy someone else? Comparison is the thief of joy, as they say. It's true. It doesn't make sense to compare yourself to others because they were raised differently, lived in different environments, made different choices, were inspired by different people, faced different problems, and hold different values, priorities, and perceptions of the world. Often, we fixate on one or a few categories and use them as the sole basis for comparison.

Let's take salary as an example. Suppose you earn $80k a year, and someone you know from college earns $150k. In your mind, you will choose at least three factors to find commonality: you attended the same school, you are the same age, and you both have three years of work experience. Immediately, you may feel a tinge of jealousy. How can this person, with whom you attended only one class in college, earn significantly more than you do? Your brain fixates on those three factors while simultaneously forgetting that the other person may have come from a wealthy background or had different advantages. You have your own unique set of circumstances and advantages as well. Similarly, someone earning $40k a year may envy you, but you may not consider that because $40k is not as rare as $150k, so you fixate on the higher salary. Do you see what I mean?

If we concentrate on our own capabilities instead of fixating on what others can do, we can reach our potential much faster.

Go after what is rare, and usually, what is rare is not easy to attain. That's precisely why you should pursue it.

Lost in a Daydream

by Clay Banks